Exclusions of Fire Insurance

Fire insurance helps property owners protect their assets from unexpected fire-related losses. It creates a protective shield for buildings, equipment, personal property, and inventory. This insurance provides financial coverage and ensures that valuable assets are safeguarded against fire damage.

Purchasing a fire insurance plan helps property owners to recover the costs of repair, replacement, or reconstruction within the policy limits. Given the frequency of fire incidents in India, fire insurance is crucial for business and property owners. It ensures they can protect and recover from potential harm, maintaining financial stability and continuity.

Intentional Damage or Willful Negligence

Fire insurance does not cover intentional damage or willful negligence. If the insured deliberately causes damage or neglects to take reasonable precautions, the policy will not provide compensation. This includes acts such as arson or ignoring obvious fire hazards.

War and Invasion

Losses or damages caused by war, invasion, or any war-like operations are excluded. This exclusion applies to both declared and undeclared wars, as well as civil war, rebellion, and insurrection.

Electrical Machine Damage

Damage to electrical machines caused by internal issues is not covered. This includes breakdowns, short circuits, or other electrical failures that do not result in a fire. If an electrical appliance or machine causes a fire, the subsequent fire damage may be covered, but the initial mechanical or electrical failure is excluded.

Missing or Misplaced Property

Property that is simply missing or misplaced is not covered by fire insurance. If items are lost and there is no evidence of fire-related damage, the policy will not provide compensation. This exclusion covers situations where items are unaccounted for rather than destroyed.

Damages Due to Rusted Fittings or Apparatus

Fire insurance does not cover damages resulting from rusted fittings or apparatus. Corrosion and rust are considered maintenance issues and are the responsibility of the property owner. Damages caused by neglecting to maintain equipment and fittings are not included.

Assets that are Third Party Liability

Assets that are the liability of a third party are excluded from coverage. If the property or asset is owned by someone else or if the insured is not responsible for the asset, the fire insurance policy will not cover it. This ensures that only assets owned by the insured are protected.

Underground Fires

Underground fires, such as those in mines or subterranean areas, are not covered by standard fire insurance policies. These types of fires are typically considered specialised risks and require specific coverage that is not included in general fire insurance.

Fires Issued by Public Authorities

Fires started by public authorities are excluded from coverage. This includes fires set by government or municipal entities for reasons such as demolition, clearing land, or other public purposes.

Spontaneous Combustion

Spontaneous combustion is not covered by fire insurance. This occurs when materials ignite on their own without an external flame or spark, which may be due to chemical reactions. Losses resulting from spontaneous combustion are considered preventable and thus are excluded from coverage.

Fire Caused by an Earthquake

Damage from fires caused by earthquakes is excluded from standard fire insurance policies. Earthquake-related fires are considered a consequence of seismic activity and require separate earthquake insurance coverage. Fire insurance alone does not cover such events.

• Fire (physical damage, loss or destruction caused to the insured property).

• Bush Fire/Forest Fire/Jungle Fire

• Explosion or Implosion

• Lightning

• Landslides/Rockslides

• Impact Damage

• Missile Testing Operations

• Riots, Strikes and Malicious Damages

• Bursting or Overflowing of Pipes, Water Tanks

• Leakage From Automatic Sprinkler Installations

• Earthquakes and Volcanic Eruptions

• Storms, Cyclones, Tempests, Hurricanes, Typhoons, Tornados, Floods, Tsunamis, and Inundations

• Theft

• Building

• Plant and machinery

• Stocks

• Furniture

• Fixtures and fittings

• Other contents

While fire insurance offers extensive protection, it is necessary to understand its limitations for adequate coverage. Standard exclusions include intentional damage, war, electrical malfunctions, and missing property. However, it safeguards against a wide range of events like fires, explosions, riots, and natural disasters.

A fire can cripple a business, and insurance helps with recovery costs, ensuring financial stability. Tata AIG offers fire insurance plans to help property owners get adequate coverage against fire damages.

If you want more comprehensive protection, consider our fire & burglary insurance that includes coverage for theft alongside fire damage. By choosing Tata AIG's insurance plans, SMEs can ensure financial protection and stability.

Don't wait for disaster to strike – secure your business today with appropriate fire insurance.

What are 12 perils of fire insurance?

The 12 perils of fire insurance include the following:

• Fire

• Lightning

• Explosion / Implosion

• Aircraft Damage

• Impact damage by any road, rail, vehicle, etc.

• Riot, Strike, Malicious Damages (RSMD)

• Storm, Cyclone, Typhoon, Hurricane, Tornado, flood, etc.

• Subsidence, Landslide and Rock slide

• Leakage from Automatic Sprinkler Installations

• Bush Fire

• Bursting or overflowing of Water Tanks, Apparatus and Pipes

• Missile Testing operations

Which peril is not included in standard fire insurance?

Here is a list of perils that are not included in standard fire insurance:

• War, invasion

• Nuclear risks

• Damage, loss and destruction due to pollution or contamination

• Cold storage stocks damage or loss

• Electrical machinery loss, destruction and damage

• Expenses of architects, surveyors and engineers

• Consequential or indirect loss

• Loss or damage by spoilage

• Loss or damage due to earthquake, volcanic eruption